India allows UAE’s ADNOC to export oil from strategic reserve

The union cabinet has allowed the Abu Dhabi National Oil Company (ADNOC) to export oil from its Mangalore strategic petroleum reserve, marking a policy shift that could enhance foreign participation as India seeks to expand its storage capacity. Allowing ADNOC to export its oil mirrors a model adopted by countries such as Japan and South Korea that allows oil producers to re-export crude from storage facilities. India does not allow oil exports. ADNOC had sought permission from the Indian government for the export of its oil from the cavern as it was finding it difficult to sell to Indian refiners, some of which have cut crude processing due to falling demand.